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As government regulations surrounding diversity, equity and inclusion programs continue to evolve, small businesses may be wondering whether they need to reevaluate their DEI approaches. While President Trump’s January Executive Order 14173 effectively barred affirmative action in federal contracting jobs, the core goals of building a fair and inclusive workplace remain relevant.
For companies operating amid the new DEI landscape, the key is striking a balance between maintaining a welcoming, fair and respectful workplace and compliance with new laws. There are practical, legally sound strategies small businesses can use to nurture inclusivity in the workplace – without relying on labels that could create legal issues.
RELATED: Adapting DEI Policies for Today's Political and Legal Climate >>
Many businesses are moving away from terms like “DEI program” in favor of more neutral, goal-oriented options like:
The aim is the same: to foster a high-performing, inclusive workplace where everyone can thrive. By focusing on language that emphasizes skills, equity of opportunity and organizational health, companies can obey DEI regulations while maintaining a commitment to inclusivity within the new legal framework.
Such rebranding isn’t abandoning inclusion in the workplace. Rather, it’s communicating about it in a way that reflects today’s legal and cultural realities – especially important for small businesses that don’t have legal and HR departments on standby.
Even if formal DEI initiatives are being cut at large corporations, as news reports have indicated, small businesses can foster a welcoming work environment. Prioritize inclusive hiring practices, mentorship opportunities and internal support for all employees without using terminology that could trigger legal concerns.
Ways to achieve these goals include:
Adhering to structured, skills-based hiring processes that focus on qualifications and relevant experience help ensure equal opportunity for all candidates.
Mentorship programs open to all employees promote growth, connection and retention.
Providing open feedback channels and inclusive team-building activities strengthens belonging across diverse groups.
Without focusing on DEI-specific branding, flexible work arrangements, mental health support and professional development opportunities are all ways to create a positive workplace culture where employees feel valued.
To navigate the evolving regulatory environment effectively, small business leaders should:
Regularly seek guidance from legal and HR professionals to ensure compliance with federal and state laws affecting workplace diversity.
Stay updated on new legislation and executive orders that may impact workplace practices and inclusivity efforts.
Conduct periodic reviews of company policies and practices to both align with current legal standards and continue promoting an inclusive workplace.
While Fortune 500 companies are scaling back DEI language, many still prioritize inclusion under different frameworks (e.g., leadership development or employee resource groups).
Small businesses can learn from these shifts and adopt relevant ideas that allow them to adapt without overhauling their entire approach.
RELATED: How to Create a Positive Culture that Drives Performance >>
The DEI landscape may be changing, but building a respectful, opportunity-rich workplace is still good business. Through our HR compliance services, Axcet helps small and mid-sized companies navigate evolving regulations while strengthening culture, retention and performance. Let’s build a workplace that works—for everyone. Contact us today >>
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